SANDFIRE RESOURCES NL
Using earnings multiples for valuing companies with finite life assets can cause potential issues especially as those life assets approach the end of their useful life. Let’s use an example to illustrate this point. During the 2018 June quarter production reporting season, a number of mining companies recorded steep share... Show More
Around this time of year, for the past two years, we have published on Livewire the results of our quant screening of Australian stocks, in search of companies that meet our particular metrics around valuation, expected EPS growth and balance sheet safety. One thing they all have in common is... Show More
Phil King thinks Zip is the best way to buy now, pay later; Telstra faces industrial action as it won't (can't?) give payrises that match inflation; growing concerns over China's "great wall of debt"; and the Royal Commission into aged care operators gets underway. Here's what's happening in markets today.... Show More
Early results suggest Sandfire may be onto something with its decision to fund exploration at White Rock’s Alaskan base metals project. But with White Rock still capped at $11m, it seems the market is yet to catch on. And well-regarded analyst David Coates puts the case for Breaker to triple. Show More
Welcome to the FNArena Reporting Season Monitor for the August result season 2018. The Monitor reports ratings and consensus price target changes, along with brief summaries of the collective responses, from FNArena database brokers for each of the 300+ stocks. Week 3 is now available with coverage of 213 stocks. Show More
The copper price is often regarded as a barometer of the world economy because of its wide-ranging applications in industrial production and electrical equipment. Copper is used everywhere from homes and factories, to electronics and power generation and transmission, so demand for copper is often viewed as a reliable indicator... Show More
This time last year we published an article on Livewire called ‘Screening for low-risk equity investments’. Of the seven stocks we discussed, most did well, with an average gain of 90% across them. Livewire got in touch and asked us to reflect on the original research, and reapply the strategy... Show More
Local stocks hit the skids today courtesy of a weak lead from the US mkt overnight however we saw more selling in US Futures throughout our session today – at our close S&P Futures are trading down another -0.57% pricing a drop of ~170pts on the Dow when trading kicks... Show More
Shares in graphite hopeful Black Rock were smashed following Tanzania’s asset grab. But a PFS finds its project will still deliver strong returns thanks to low costs. Plus, Nzuri Copper gets hot and sweaty in the Congo as it prepares to release a feasibility study on its high-grade copper-cobalt project.... Show More
Growing confidence in the Chinese economy, forecasts of an electric vehicle boom and a tightening supply outlook have sent the copper price to a two-year high with forecasts of more to come. Plus, Oklo shares get a wriggle on as first assays dribble in from its Mali gold project. Show More
Here we are at the start of another exploration field season in Western Australia’s remote Fraser Range, home to the 2012 Nova nickel-copper discovery by Sirius Resources, now a producing mine and part of Independence (ASX:IGO) after its $1 billion cash and shares takeover in 2015. Show More
Trying to value resource companies can be notoriously difficult because of commodity price assumptions. Analysts tend to be too optimistic when stock prices have already peaked, and they tend to be too conservative once prices have already bottomed. Show More
The resources industry performed well over 2016 and it may appear to some that it is ‘too late’ to increase exposure to the sector. Our analysis suggests that the recovery remains in its early stage. In making our case we have written the following research piece providing eight justifications for... Show More
Investors have become accustomed to consistent operating performance from Sandfire Resources (SFR), and the 1Q was no exception. SFR flags copper output of around 18kt in Q2 and Q3 driven by higher grade stopes, which should see C1 costs fall toward the bottom end, or possibly below guidance. We have... Show More
Thundelarra is currently drilling at their Garden Gully Gold Project located near Meekatharra, a proven gold producing area. This programme has been designed to follow up positive results from recent scout drilling which returned up to 7m @ 24.5g/t gold in highly prospective but surprisingly under-explored tenements. Could Garden Gully... Show More
In the short-term, zinc and nickel look reasonable based on their respective supply side constraints. We’re not getting carried away with the outlook for China in terms of demand, but equally we don’t expect a financial or policy crisis there in the short to medium-term. Independence Group is a predominantly... Show More
The period post reporting season sees a busy schedule of face-to-face meetings between the management of listed companies and professional investors. To see what anecdotes we could uncover we reached out to three fund managers and asked them to share a few trends that caught their attention. Ben Griffiths from... Show More
Reporting season is always a useful time to glean insights from individual companies but more powerful when you are able to benchmark across the industry. First, the most recent round of mining company quarterly reports highlight how successful resource companies have been at optimizing operating costs. Lower diesel, mining and... Show More
Romano Sala Tenna is based in Perth and has a good insight into the sentiment and levels of activity in the junior resources sector. Despite a the challenging outlook for resources he believes there is another level of pessimism still to come for WA based resources companies. He also says... Show More
Jeremy Bendeich from Avoca Investment Management says the current M&A cycle is likely being fueled by the availability of cheap credit – but it is also shedding light on value opportunities. With debt funding at record low levels there has been an arbitrage on offer for companies looking to make... Show More